Bitcoin Enters Fourth Bust Cycle as Collapse Reaches 44%
Investment analyst Luke Lango has announced that Bitcoin has likely entered its fourth bust cycle, with current trading around $68,600—down 44% from its October peak of over $124,000. Last week’s low hovered around $60,000, and Lango predicts a drop to approximately $40,000 could be imminent, citing typical bust cycles that see 70–80% declines. The anticipated timeline for this decline extends to late 2026 or early 2027.
Government Intervention and Economic Implications
A growing consensus indicates that legislative measures aiming to tax the wealthy may emerge more urgently, driven by concerns regarding unemployment as AI technologies replace jobs. Proposals include California’s Billionaire Tax and Michigan’s 5% surcharge on incomes exceeding $500,000. With unemployment projected to rise potentially to 6% this year, the economic landscape may face significant challenges as government intervention increases, impacting broad swaths of the labor force.
